India – Second Fastest Growing Investor in the US!

Investments from India Inc’s have been increasing in the United States. Amidst the entire visa brawl that is happening, Indian investments seem to be triggering the economy of the States. The rise in the investments was brought about since the global recession. Slowly, India became the second-fastest growing investor in the United States. This is as per a report – “Direct Investments in the US by Indian Enterprises” by Ficci-Ernst & Young.

It has been stated in the report that there has been a practical shift when it comes to trade between India and the United States. With this, a change has also been noticed in the investment relationship between the nations. It has been mentioned that India has grown to become the second-fastest growing investor in the US from being the largest export destination.

536 outbound acquisitions were made globally by Indian companies in FY09 and FY10. Of this number, 105 acquisitions were in the States. It was also seen that in the beginning quarter of FY11, 101 outbound acquisitions were already completed by Indian firms. Of these 101, about one-fourth was done in the US.

On the other hand, if looked at the outward FDI for India after the economic downturn, there has been a decline. This decline came down to $10.30 billion from the initial $16.20 billion. At the same time, it has been noticed that the United States has also become the favored destination. This could be clearly seen by the rise in the share to 6.5% in FY10 from the initial 5.7% in FY09. However, there has been a decrease in the total number of transactions by about 37%.

The report also mentioned that in FY09, FY10 and in FY11, the major sectors which were active include the IT/ITes, manufacturing and the pharmaceutical sectors. Above all, on one side, Indian professionals on business visas to the US are being maltreated. At the same time, India happens to be one of the major investors in the States. This brings both the nation on cross-roads.

At one end, there is a problem which needs to be addressed and on the other, thanks to investments from India, the economy of the United States benefiting. Thus, it is important for the vital shift in the attitude to take place, especially for the immigration officials in the US airports who are the first contact for Indian professionals.

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